FTSE settles after mixed morning

The FTSE 100 Index broke through the 6400 barrier before settling near to its opening mark today.

Gains by mining stocks and a fresh slice of blue-chip takeover speculation ensured the London market was in positive territory by mid-morning – up 2.3 points at 6384.1.

Building materials firm Wolseley topped the Footsie risers board after a newspaper report said the firm was in the sights of private equity giant Cinven.

Even though the speculation cooled as the session wore on, Wolseley shares remained well ahead, by 5% or 61p to 1373p.

Mining companies offered a helping hand for a second successive session as bid speculation – involving US-based aluminium Alcoa – continued to drive stocks.

Risers included Rio Tinto, which gained 52p to 2805p, and Vedanta Resources after an increase of 23p to 1238p.

Outside the top flight, gaming group 888 Holdings gained 1p to 110.5p after it said it had made progress in replacing the business lost when US authorities banned internet betting. The update was also seen as positive for rival PartyGaming, which gained 0.25p to 33.5p.

Meanwhile, investors in software company iSoft were unsettled by a newspaper report today indicating that talks over a potential £200 million sale of the business had hit trouble. Shares, which have shown signs of recovery in recent months, were down 12%, or 6.25p at 45.75p.

British Energy shares were also under pressure as analysts revised their expectations in the wake of third quarter results yesterday. The stock was 18.75p lower at 391.25p, a drop of almost 5%.

Shares in Northern Foods held firm, even though it said it had missed out in the auction of Wagon Wheels owner Burton’s Foods. The stock was 0.75p higher at 133.25p as analysts said the development made it more likely that Northern would sell its Fox’s operation to the winner of the auction.